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AMERISAFE, Inc. (AMSF - Free Report) reported first-quarter 2021 earnings of 76 cents per share, which outpaced the Zacks Consensus Estimate by 4.11%. However, the bottom line declined 13.6% year over year. The company’s premiums partially benefited from payroll audits and related premium adjustments. However, its results were dampened by lower revenues and elevated costs.
Quarter in Detail
AMERISAFE’s operating revenues dropped 10.3% year over year to $78 million and missed the Zacks Consensus Estimate by 1.6% as well. Revenues suffered lower premium written as well as a decline in net investment income.
Net premiums written declined 6.3% year over year to $79 million on account of lower voluntary premiums. Pre-tax underwriting profit of $10.9 million decreased 16.3% year over year.
Net investment income fell 15% year over year to $6.6 million as a result of reduced interest rates on fixed income securities.
Total expenses of $59.7 million escalated 9.4% from the prior-year quarter due to higher policy holder dividends. Net combined ratio of 84.6% deteriorated 110 basis points (bps) year over year.
Operating return on average equity was 13.9 %, down 220 basis points year over year, reflecting weaker profitability shown by the company.
Financial Update (as of Mar 31, 2021)
The company exited the first quarter with cash and cash equivalents of $33.1 million, down nearly 46% from the level at 2020 end. Total assets were up 1.6% to $1.5 billion from the level at 2020 end. Shareholders’ equity was $447 million, up 2% from the 2020-end level.
As of Mar 31, 2021, book value per share came in at $23.16, which grew 2.3% year over year.
Dividend Payment
During the first quarter of 2021, the company paid out a regular quarterly cash dividend of 29 cents per share on Mar 26, 2021, up 7.4% from the amount disbursed in 2020.
Other companies in the insurance space with the likes of Employers Holdings Inc. (EIG - Free Report) , Aflac Inc. (AFL - Free Report) and W.R.Berkley Corp. (WRB - Free Report) beat on first-quarter earnings by 15.9%, 27.5% and 21.35%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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AMERISAFE (AMSF) Q1 Earnings Beat Estimates, Decline Y/Y
AMERISAFE, Inc. (AMSF - Free Report) reported first-quarter 2021 earnings of 76 cents per share, which outpaced the Zacks Consensus Estimate by 4.11%. However, the bottom line declined 13.6% year over year. The company’s premiums partially benefited from payroll audits and related premium adjustments. However, its results were dampened by lower revenues and elevated costs.
Quarter in Detail
AMERISAFE’s operating revenues dropped 10.3% year over year to $78 million and missed the Zacks Consensus Estimate by 1.6% as well. Revenues suffered lower premium written as well as a decline in net investment income.
AMERISAFE, Inc. Price, Consensus and EPS Surprise
AMERISAFE, Inc. price-consensus-eps-surprise-chart | AMERISAFE, Inc. Quote
Net premiums written declined 6.3% year over year to $79 million on account of lower voluntary premiums. Pre-tax underwriting profit of $10.9 million decreased 16.3% year over year.
Net investment income fell 15% year over year to $6.6 million as a result of reduced interest rates on fixed income securities.
Total expenses of $59.7 million escalated 9.4% from the prior-year quarter due to higher policy holder dividends. Net combined ratio of 84.6% deteriorated 110 basis points (bps) year over year.
Operating return on average equity was 13.9 %, down 220 basis points year over year, reflecting weaker profitability shown by the company.
Financial Update (as of Mar 31, 2021)
The company exited the first quarter with cash and cash equivalents of $33.1 million, down nearly 46% from the level at 2020 end. Total assets were up 1.6% to $1.5 billion from the level at 2020 end. Shareholders’ equity was $447 million, up 2% from the 2020-end level.
As of Mar 31, 2021, book value per share came in at $23.16, which grew 2.3% year over year.
Dividend Payment
During the first quarter of 2021, the company paid out a regular quarterly cash dividend of 29 cents per share on Mar 26, 2021, up 7.4% from the amount disbursed in 2020.
AMERISAFE carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other companies in the insurance space with the likes of Employers Holdings Inc. (EIG - Free Report) , Aflac Inc. (AFL - Free Report) and W.R.Berkley Corp. (WRB - Free Report) beat on first-quarter earnings by 15.9%, 27.5% and 21.35%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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